Viva Ltd had the following results for the year ending 31 March 2019

Accounting Jan 18, 2021

Viva Ltd had the following results for the year ending 31 March 2019. Trading income Bank interest Capital gains Qualifying charitable donations Dividends received from UK companies £400,000 £2,000 £5,000 £ (2,000) £45,000 Required: Calculate the corporation tax liability for the year ended 31 March 2019. A. E 76.950 B. E19.950 C. £ 17.000 D.E 25.000

Expert Solution

Tax Liability is calculated as below:

Particulars	Amount (in GBP)
Trading Income	400,000
Bank Interest	2,000
Capital Gains	5,000
Less: Donations	(2,000)
Dividends (Exempt)	Nil
Taxable Income	405,000
Corporation Tax	19%
Tax Liability	76,950

The correct option is option A i.e. GBP 76,950.

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